alongside other system expansion projects.

Hourly Allocation Factor ("HAF")

39. The HAF process is a method of allocating incremental firm capacity to multiple customers forecasted to require additional firm service within an identified Area of Benefit1 that are forecast to share capacity on a Development Project2. The HAF is allocated and applied as a capital cost to the individual economic analysis of customers receiving incremental capacity as they commit or contract for gas service. This allocated capital cost is in addition to any customer specific facilities including distribution main, service line, customer station and meter.

40. The HAF is calculated by dividing the net capital cost of a Development Project by the capacity that the project adds to the Area of Benefit and is expressed in dollars per m3/hour.

41. The threshold of applicability of the HAF is set on a case by case basis in consideration of the size of the Development Project. For larger projects, the HAF applies only to large volume customers and for smaller development projects, all customers, large and small are included.

Customer Attachment and Revenue Horizon

42. The maximum customer attachment horizon for small volume customers (including residential, commercial and industrial connections with annual consumption of no

1 The Area of Benefit is defined as the geographic area, drawn as a polygon on a map, that includes all customers who will be served by and benefit from the infrastructure build or pressure increase. 2 Development Projects –a system expansion project that will expand capacity over a certain area to serve increasing demands from existing and/or new customers. It may include a mix of large and small volume customers.